CBROP 2024 Signals Revenue Mobilisation Challenges and Calls for Fiscal Consolidation

Nairobi, Kenya – The Central Bank of Kenya (CBK) has highlighted challenges in revenue mobilisation and fiscal sustainability in its 2024 Central Bank Review of Public Finances (CBROP). The report warns that slower-than-expected revenue collection and rising expenditure pressures could strain national and county budgets, emphasizing the need for disciplined fiscal management and consolidation measures.
According to the CBROP 2024, revenue shortfalls are being driven by underperformance in tax collection and a weak compliance environment. These gaps, if unaddressed, may necessitate adjustments in public spending, including prioritization of essential services and infrastructure projects. The report also recommends that governments—both national and county—enhance transparency, improve efficiency in public expenditure, and tap into untapped revenue sources to sustain development programmes.
Economists note that the review is a signal for counties, including Kiambu, to strengthen their own-source revenue strategies while managing recurring expenditures. With fiscal consolidation measures, the CBROP aims to safeguard economic stability, maintain investor confidence, and ensure continued funding for social and development projects